RPG Cables is one stock which can be a good turn around story over next 6 months to 1 year. The company has huge debt and is making loss. For the quarter ended Sep 2007, the loss has increased compared to previous quarters.

As per reports, RPG Cables has some land in Mumbai which is valued above Rs 100 crore. The company holds real estate at some other locations as well. If the company is successful in getting a good price for the land, the debt can be paid. This can help the company to plan future expansion as well.

The stock has seen a rise in trading volumes recently.

Investors are suggested to keep an eye on the stock and enter only with a long term investment plan. The stock may not give any returns for next 2 – 3 months. Only once the future plans of the company are clear, the stock will move up.

The stock has touched a 52-week high of Rs 67.90 on BSE and a low of Rs 40.

We suggest a target of Rs 100 – 140 over next 12 months for RPG Cables if the company is able to get rid of the debt and the new expansion plans are implemented.

Other stocks from the sector, KEI Industries, Nicco Corp and Universal Cable have been performing well.